lindab || we
we simplify
simplify construction
construction
lindab
Lindab Group
Q1 2015
“We simplify construction”
1
lindab | we simplify construction
Highlights
2
lindab | we simplify construction
Lindab Group – Q1 2015 Highlights
Our growth keeps momentum
3

Sales increased by 12% compared to last year, or 5% when adjusted for
currency and structure.
─ Products & Solutions: 15% (6% adjusted)
─ Building Systems: -8% (4% adjusted)

EBIT amounted to SEK 54 m in Q1 compared to SEK 60 m last year (excluding
one-off items).
─ EBIT margin amounted to 3.2% (4.0)
─ Product & Solutions: 4.8% (5.4)
─ Building Systems: -3.0% (-1.7)

Net profit amounted to SEK 27 m compared to SEK 14 m last year.

Cash flow from operations amounted to SEK -83 m compared to SEK -226 m in
Q1 2014.
lindab | we simplify construction
Lindab Group – Q1 2015 Highlights
Our growth keeps momentum

The New Strategy is yielding results.
─ ONE Lindab organisation – addition of two supporting product areas “Air
Movement” and “Fire and Smoke”.
─ Further progress within Operational efficiency.
─ Further extended distribution footprint.

Continued positive development in Products & Solutions.
─ Growth for 6th consecutive quarter.
─ Acquisitions contributing positively.
─ General market outlook: modest growth.

4
Uncertainty in Russia and Belarus prevails, very weak Rouble Y-o-Y.
─ Strong impact on Building Systems division.
─ Continued cautious outlook for this region.
lindab | we simplify construction
Financials
5
lindab | we simplify construction
Lindab Group
Profit & Loss Q1 2015
SEK m
Q1 2015
Q1 2014
Sales
1,694
1,506
EBIT*
54
60
EBIT* %
3.2
4.0
Fin net
-13
-37
Tax
-14
-6
27
14
Net profit
Sales growth
12%
Structure
3%
Currency effect
4%
Organic
5%
*) EBIT excluding one-off items of SEK 0 m in Q1 2015 and SEK -3 m in Q1 2014, net profit not adjusted

The improvement in sales is primarily explained by continued positive development within Products & Solutions, where
all regions showed growth in the quarter, supported by stronger strategic focus on sales. Adjusted for currency,
Building Systems also showed positive growth in the quarter, explained by a high level of deliveries of projects in the
CIS region.

The lower EBIT compared to the same period last year is primarily explained by weak trend in profit in Building
System, primarily as a result of currency effects, and a number of strategic projects, within the Group, influencing
costs.

6
The higher volume in Products & Solutions has contributed positively to the result, however gross margins have been
lower due to changes in product mix and lower price levels compared to corresponding quarter last year.
lindab | we simplify construction
2012 - 2015: increased sales; increased efficiency
Sales 12m
EBIT 12m
EBIT 12m
(MSEK)
Sales 12m
(MSEK)
EBIT
+11%
600
7,250
545
550
7,000
491
500
444
450
6,750
443
390
400
6,500
350
6,250
300
250
6,000
226
0
2010

7
2011
EBIT L12M SEK 491 m, EBIT margin 6.8%
Note: EBIT excl one-off items
2012
2013
2014
2015
Sales
+3%
lindab | we simplify construction
Lindab Group
Financial net
Financial net as % of Net debt
Actual
%
10

Significantly lower financing costs as
a result of the new credit agreement,
with better terms and lower credit
limit.

The increase in February 2014 is
explained by release of the remaining
capitalised arrangement fee for the
old credit agreement (SEK -13 m).
Actual adj. for release of old agreement costs
8
6
4
2
0
Mar
2013
8
Mar
2014
Mar
2015
lindab | we simplify construction
Lindab Group
Cash flow Q1 2015
SEK m
Q1 2015
Q1 2014
67
67
- change in working capital
-124
-244
- investing activities
-174
-178
-6
-20
-20
-29
Free cash flow
-257
-404
Adjusted free cash flow*
-116
-388
Cash flow from
- operating activities
- financial net paid
- tax paid
*) Adjusted for acquisitions (2014/2015)
9

The improved cash flow is mainly explained by change in working capital. Interest paid was also affected positively in
the quarter as a result of the new credit agreement.

Net debt end of March amounted to SEK 1,999 m (2,038).
lindab | we simplify construction
Lindab Group
Cash flow Q1 – working capital development
SEK m
Q1 2015
Q1 2014
-58
-124
-136
-87
70
-33
-124
-244
Stock
Operating receivables
Operating liabilities
Total change in working capital
10

The change in operating receivables is explained by stronger sales in Products & Solutions compared to the
same period last year.

Operating liabilities is affected by an accrual effect of accounts payable.

The change in stock is attributable to active work to reduce stock levels and that the stock levels at the
beginning of the quarter were relatively higher than for the same quarter last year.
lindab | we simplify construction
Lindab Group
Operating cash flow trend
Quarterly
(MSEK)
Quarterly
L12M
(MSEK)
L12M
500
800
400
600
300
400
200
200
100
-200
-100
-200
-400
-172
-226
-239
2010
11
-83
-90
-300

0
3
0
2011
2012
L12M cash flow from operating activities amounted to SEK 421 m
2013
-600
2014
2015
lindab | we simplify construction
Segments
12
lindab | we simplify construction
Products & Solutions
Profit & Loss Q1 2015
SEK m
Q1 2015
Q1 2014
Sales
1,528
1,325
EBIT*
73
EBIT* %
4.8
Sales growth
15%
Structure
3%
71
Currency effect
6%
5.4
Organic
6%
*) excluding one-off items of SEK 0 m in Q1 2015 and SEK -3 m in Q1 2014
13

All regions within the segment had growth in the quarter. Continued growth in large markets like Sweden and
Germany. Most markets in the CEE/CIS region also showed a positive sales trend in the quarter.

Indoor Climate Solution and Building Solution continue to show a strong development.

The operating profit increased in the quarter, while the operating margin decreased. The improvement in
operating profit is explained by higher volume, while a lower gross margin and a somewhat higher cost level
affected the result negatively.
lindab | we simplify construction
Building Systems
Profit & Loss Q1 2015
SEK m
Q1 2015
Q1 2014
Sales
166
181
EBIT*
-5
-3
-3.0
-1.7
EBIT* %
14
Sales growth
Structure
Currency effect
Organic
-8%
0%
-12%
4%

The higher sales in the quarter, adjusted for currency, are explained by large project deliveries to the CIS region,
especially to Kazakhstan, Poland and Czech Republic, while sales to important markets such as Russia,
Belarus and Germany were lower than the same quarter last year.

Order intake was lower than for the corresponding quarter last year.

Building Systems large exposure to Russia and Belarus with prevailing unrest, in conjunction with a weakened
rouble compared to the same period last year, has had negative effect on the result.
lindab | we simplify construction
Sales development by product areas
Building Systems, Organic growth, L3M
Products & Solutions, Organic growth, L3M
Ventilation Products
Indoor Climate Solutions
Building Product
Building Solutions
60%
30%
45%
20%
30%
10%
15%
0%
0%
-10%
-15%
-20%
-30%
Mar
2013
Mar
2013
Mar
2014
Mar
2015
Mar
2014
Mar
2015

Sales of Indoor Climate Solutions and Building Solutions are continuing to grow strongly for Products & Solutions
while sales of Building Products have declined in last two quarters.

Sales in Building Systems, adjusted for currency, increased in the quarter, explained by large project deliveries to the
CIS region.
15
lindab | we simplify construction
Outlook
16
lindab | we simplify construction
Economic development in Euro zone
Sources: Eurostat & European Comission
Market Development

The slow recovery of the European economy continues;
stronger within consumer business than industrial
business.

GDP is expected to grow with 1.8% in the EU, but to
decline with 2.6% in CIS during 2015.*

Recession and high geopolitical uncertainties in Russia
and parts of CIS lead to long lead times for investment
decisions.

The sentiment in the European construction market is
developing better than the actual construction output,
which has started to show a weakening trend.

However, most European construction markets are
expected to grow and continue to recover in during 2015.
The current construction activity also remains strong in
Lindab’s largest and third largest markets, Sweden and
the UK.
17
*) Source: IMF, World Economic Outlook (Apr 2015)
Construction output & sentiment in EU
Source: Eurostat & European Comission
lindab | we simplify construction
Strategy update
lindab | we simplify construction
Optimising the flows
Improved manufacturing footprint
• In Czech Republic, Ventilation manufacturing will be focused to Karlovarska and
Building products manufacturing to Hustopece.
• Restructuring in Finland by closing Building products manufacturing in Kyyjärvi
and concentrating manufacturing to Jyväskylä and Estonia.
• In Poland Lomianki Building products unit closes and Wieruchów becomes centre
of manufacturing and distribution.
“By focusing on manufacturing the most
profitable products in best-cost locations,
while subcontracting “non-core” products,
we improve our flows and free up space for
strategic use. The result is lower costs,
higher efficiency and better service levels”
19
lindab | we simplify construction
New branches and sales offices
•
•
•
•
•
20
Brno, Czech Republic.
Krakow, Poland.
Sollentuna, Sweden.
Dubai, United Emirates, new
rep.office.
Refurbished branches in Ålborg and
Åhus, Denmark.
”Always close, always available.”
Owning our distribution means closer
relations to our customers, keeping a
finger on the pulse everyday.
lindab | we simplify construction
We are serious about customer success
•
Supplier of the Year Awards: In Sweden by XL-Bygg. In Denmark by the trade
association, Danske Byggecentre.
"We put high demands on ourselves to provide success for our customers, that is
why it is particularly nice when customers feel it, and even choose to reward us
with a prize!”
21
lindab | we simplify construction
Solutions to create a safe environment
Smoke Control Ventilation is
a matter of human safety.
Lindab Smoke Control
Systems are ready to install
in:
•
Hospitals, Care homes
•
Hotels, shopping
centres
•
Underground buildings
•
Train stations
•
Multistorey parkings
22
“The strategic
acquisition of MP3 is
strengthening the
product offering and
upgrading
competences”
lindab | we simplify construction
Indoor Climate Solutions Success
Solus chosen
for 16 floor
mixed use
building in
Sweden
•
Sleek design with excellent heating and
cooling properties makes Atrium Plana an
architect favourite. Wider range launched
in Q1.
•
Germany received its largest chilled beam
order to date in the quarter, worth over
SEK 4 m.
•
Break-through order for Solus, the
innovative cooling heating system – up to
45% saving on energy use.
“Sales of solutions will leverage sales of
our other products.”
23
lindab | we simplify construction
Making it easier for consultants
Our project planning software, LindQST, makes it easy to visualise and plan the
project. It’s an advanced web tool to simplify the choice of our air and waterborne
products. Now upgraded with a 3D project simulator. All documentation is available
directly on the web.
“Working with specifiers is key to selling solutions”
24
lindab | we simplify construction
Organisation to deliver on the Strategy
25
lindab | we simplify construction
Building Systems - Activities
Joint Sales Activites
Astron and Lindab in
Russia.
26
Africa Focus – section
on website.
Best Young
Researcher:
Energy Efficiency in
buildings.
lindab | we simplify construction
Building Systems - Activities
Large shipments for Kazakhstan
multifunctional base for drilling services
boosted the quarter.
27
Astron roof system LMR600 won
TopBuilder 2015 award for
innovative solution.
lindab | we simplify construction
Lindab can also be a source of inspiration…
Some creative examples from customers…
The Lindab
Knight, produced
for an open
house event at
Finland’s leading
vocational adult
education
centre.
28
”Lindab is not
only a solution –
but also a source
of inspiration”
A customer on
social media in
Romania.
lindab | we simplify construction
Capital Markets Day
20 May
Gothenburg
11 am Novotel
2 pm Sjömagasinet
register now!
29
lindab | we simplify construction
Thank You
Q&A
30